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Do you think that there exists a free competitive market (as defined by neoclassical economics) in...

Do you think that there exists a free competitive market (as defined by neoclassical economics) in the real world? (i) If yes, provide an example of the free market and explain why this market is “free and competitive.” (ii) If no, what are the reasons we cannot have a free market in the real world?

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Answer #1

Answer - No , the free markets cannot exist in the real world. The free market is one which is freenfrom any government intervention. There is hurdle free interaction between the sellers and buyers. But , this is next to impossible.

We see some level of government intervention in every matter , whether its related to the regulation of inefficiency , resolving the disputes which may arise in the market , providing incentives etc. Thus , in some or the other way , the government intervenes in every market . Thus , the existance of free market cannot be there.

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